Gold prices in Egypt have taken a dive since the beginning of June, shrinking by nearly 8 percent and shrugging off some of its huge gains in 2023.
“The recent declines can be attributed to the decline in demand as the market has become less concerned over the exchange rate,” Hani Milad, head of the Gold Division at the Cairo Chamber of Commerce explained to Ahram Online.
“Also, the supply increased after the government’s exemptions on customs duties for gold brought by Egyptian travellers home,” Milad explained.
Milad also ascribed the decline in local gold prices to the decline in its prices globally.
Since the beginning of June, gold spot per ounce price has declined by 2.6 percent.
*Development of gold spot prices since the beginning of 2023. Bloomberg.
“Gold has reached its lowest point, and it is prone to rebound in the coming period,” Milad said.
“The government’s decisions to contain the market, including displaying prices on the Egyptian Exchange and suspending customs on gold for six months, affected prices and reduced speculation on the yellow metal,” market analyst Mohamed Atta told Ahram Online.
“There was over 20 percent disparity between global and local prices, which has ended as the domestic market stabilized,” Atta added.
Source : Ahram